Yeah, I do see your point. I think one problem is the size of...

Yeah, I do see your point. I think one problem is the size of the competition they would be going up against. Even though they may have a better product, they wouldn't have the manufacturing capacity to compete against them. This way they aren't competing directly as they are just filling a gap in the market, and once they are established and profitable there they will be in a great position to target more customers. It doesn't matter how good my new brand of cola is, I am going to get thumped by the big guys if I go head-to-head with them straight away!